Thursday, November 20, 2008

Unit 1: Negative externalities associated antisocial driving

This BBC clip and associated article outline new government proposals for dealing with various types of antisocial driving such as driving under the influence of drugs and excessive speeding

http://news.bbc.co.uk/1/hi/uk/7738995.stm video
http://news.bbc.co.uk/1/hi/uk/7738919.stm article

a) Explain what negative externalities arise from antisocial driving
b) What forms of intervention in the free market are the government suggesting?
c) To what extent are the proposals likely to reduce the market failure?

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